Gold prices have made a strong recovery from March lows, boosted by President Joe Biden's massive $2.3 trillion infrastructure stimulus plan.
Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.
Biden’s multi-trillion dollar infrastructure bill is expected to spur the nation’s biggest buying spree in commodities, which further suggests that we could be on verge of a supercycle, as demand outstrips supply this year.
Looking ahead to this week, trader’s attention has now shifted to Minutes from the Federal Reserve’s most recent meeting on monetary policy, due for release on Wednesday. The minutes are expected to provide some clarity into continuing debates at the central bank about the trajectory of the economic recovery, inflation and the recent rise in U.S borrowing costs.
Other key macro events this week will include; speeches from various FOMC members, the ISM Non-Manufacturing Report and PPI data.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: